How to Buy Correct Insurance? A #terminsurance cover should be at least 10 times of your annual income. Industry experts often recommend this simple formula. For example - If your annual income is Rs.10 lakh, then you should get cover for minimum Rs. 1.00 crore.
1. Make sure your purchase is Need based and not peer based!
2. Be specific about the time you would require the cover for.
3. Take Inflation into account.
4. Compare the Costs and Benefits of a Term plan.
Tips for selecting amount of insurance
Tip 1: Think About Your Life Stage & Number of Family Members When Determining Cover Amount.
Tip 2: Think of How Much Your Family Will Need to Maintain Their Lifestyle.
Tip 3: Cover Amount Should be Determined Based on Family's Needs.
Tip 4: Add Any Liabilities You May Have to the Cover Amount.
But term return of premium life insurance policies offer maturity benefits by returning the total amount of #insurancepremium paid so far, provided a policy is continued till the end of term. Tax Benefits: A policyholder can enjoy tax benefits over the premiums paid for term life insurance plans with maturity benefits.
Most term life insurance policies last 10, 20 or 30 years, but many companies offer additional five- or 10-year increments, some up to 35 or 40 year terms. For example, a 20-year term policy covers you for 20 years from date of purchase, as long as you keep paying the premiums.
Everyone who is paying #lifeinsurance premiums is essentially putting all their money in a large metaphorical bucket managed by the life insurance carrier. ... And, if you die during the term of your policy, the company reaches into that bucket that everyone is paying into and gives that money to your beneficiaries.
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